Uber Confirms It is Talking to Investors

Uber Technologies CEO Travis Kalanick is back at the negotiating table.

On Friday, he confirmed to the Wall Street Journal that the ride-on-demand company had begun speaking to investors about two weeks ago. He declined to comment on how much Uber might seek to raise, who he was speaking to, or the value any new round would place on the company.

“I will not comment on valuation,” he said. “You’ll have to speculate on your own.”

Uber, which last raised $37 million in late 2011, is expected to nab hundreds of millions of dollars, said one person with knowledge of the matter, which could vault it into the ranks of startups with multi-billion dollar valuations.

A large war chest will be critical, as Uber continues its aggressive push abroad, particularly in Asia, and tussles with local regulators and taxi unions, which have tried to hobble its expansion plans.

More money could also help the service compete with younger upstarts like Lyft, a ride-sharing app for non-professional drivers that recently raised $60 million in an investment round led by the venture firm Andreessen Horowitz. That fundraising, announced in May, valued Lyft at about $275 million, one person with direct knowledge of that matter has said.

Uber recently slashed prices for its “uberX” service (a less expensive option with eco-friendly cars) to be about 10% lower than taxi prices. The move was seen by many as a competitive response to Lyft’s popularity in San Francisco, Uber’s original market. Lyft is in six markets, versus 35 markets for Uber, but it has grown fast in San Francisco.

Earlier this month, Uber began operating in Seoul, Taipei, Mexico City and Zurich.